April 16, 2020

PPP Funds Exhausted

Update April 22: Congressional leaders and the White House announced an agreement yesterday which would, among other things, nearly double the amount available through the Paycheck Protection Program (PPP) by adding $320 billion in funding. The Senate passed the bill late yesterday by voice vote, although two senators (Rand Paul of Kentucky and Mike Lee of Utah) voiced opposition. The bill now goes to the House, which is expected to vote on Thursday. The text of the House bill is here.

On the morning of April 16, the Small Business Administration announced that it is "unable to accept new applications at this time for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL)," citing a "lapse in appropriations" (page viewed at 9:17am Pacific). PPP loans that do not yet have SBA confirmation numbers will not be approved unless Congress appropriates more funds for the program.

Congress and the White House have been negotiating the terms of additional funding for the PPP, with meetings yesterday evening and continuing today. An article in the Wall Street Journal described the state of the negotiations: "Republicans want to approve $250 billion more for the loans, before moving on to other aid and stimulus proposals. Democrats want to make changes to the small-business program and include money for hospitals, state and local governments, and food assistance recipients alongside it."